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Local Greater Palm Springs real estate market experts Market Watch LLC have just released their “May 2021 Desert Housing Report” providing a current look at our local residential real estate market. Some highlights:
Detached Home Median Price: This chart clearly shows that the detached home median price continued to surge in the Coachella Valley in May. The May detached home median price jumped to $580,000 (up 31.8% year-over-year from $440,000 in May 2020).
Attached Home Median Price: For the 11th straight month, the Coachella Valley attached home median home price increased. The May attached home median price increased to $359,000 (up 24% year-over-year from $289,500 in May 2020). Market Watch commented that historically the three-month average of median prices has peaked in May and then declined about 10% over the following four or five months. Time will tell if the current unusually strong housing market will follow this historical seasonal pattern.
Twelve Month Change In Median Home Prices By City: Detached home median prices increased year-over-year in all nine of the major Coachella Valley cities surveyed. Increases in detached home median prices ranged from 41.8% year-over-year in Rancho Mirage to 8.1% in the city of Coachella, with increases of over 25% in seven of the nine Coachella Valley cities surveyed. Market Watch pointed out that detached home median prices in every Coachella Valley city other than Rancho Mirage and Coachella now exceed the historic high median prices reached during the housing boom of 2004 to 2006. Attached home median prices increased year-over-year in all seven of the major Coachella Valley cities surveyed. Increases in attached home median prices ranged from 30.5% in La Quinta to 10.9% in Indio.
Three Month Average Home Sales: In May, total home sales reached an all-time three-month average high of 1,298 sales per month (up 91.2% year-over-year from 679 sales one year ago). Two thirds of all home sales were single-family residences and one third were attached homes. Market Watch noted that if the historic seasonal pattern continued this year, home sales should decrease somewhat over the upcoming summer months.
Twelve Month Average Home Sales: The twelve-month average of home sales shows the long-term trend of increasing total, detached and attached homes sales after the three-four month decline in home sales at the start of the pandemic last year. Over the last twelve months, total Coachella Valley home sales have been averaging 1,102 sales (up 46.3% year-over-year from the twelve-month average total home sales of 753 sales one year ago).
Home Sales by City: Home sales increased year-over-year in every Coachella Valley City. Market Watch noted that the largest sales increases occurred in the “resort” cities rather than in the more “local residential” cities. Home sales increased year-over-year by 133.9% in Rancho Mirage, 113.4% in Palm Desert, 101.7% in La Quinta and 73.8% in Palm Springs.
Home Sales by Price Range: The largest home sale increases occurred in the middle to higher price ranges, with sales of homes priced over $1 Million increasing by 270.4% year-over-year (from 54 homes in May 2020 to 200 homes this May). Sales of homes priced from $200,000 to $300,000 decreased slightly from an average 141 sales in May 2020 to 138 sales per month this past May. Sales of homes priced under $200,000 decreased by 69% (from an average 58 sales per month in May 2020 to 18 sales per month homes this past May). Market Watch commented that this sales decrease was due to there being fewer homes in these price ranges, due to the large home price increases the Coachella Valley has been experiencing.
Coachella Valley Housing Inventory: On June 1st, there were a record low 682 homes for sale in the entire Coachella Valley (down 75.6% year-over-year from 2,793 homes for sale on June 1, 2020). Market Watch explained that housing inventory continued to remain low because high sales were rapidly absorbing the increasing number of new listings. This lack of supply is putting upward pressure on home prices. Historically, at this time of year housing inventory normally declines but Market Watch felt that this seems almost impossible given the already low inventory level.
Days in the Market and Months of Sales: With the continued high number of home sales and low housing inventory, the Coachella Valley month of sales ratio was 6/10 of a month on June 1st. Market Watch commented that this is the lowest Coachella Valley months of sales ratio in history and means that at the current sales rate the current housing inventory would be completely absorbed in about two weeks (compared to a months of sales ratio of 3.7 months on June 1st, 2020). The median value for days in the market in the Coachella Valley was just 30 days (compared to 52 days one year ago).
Months of Sales by Price Range: The month of sales ratios was under 6/10 of a month in all price ranges under $800,000. Months of sales ratios gradually increased in the price ranges above $800,000, reaching a high of 1.4 months in the over $1 Million price range (compared to 8.9 months in the over $1 Million price range one year ago).
Months of Sales by City: On June 1st, the month of sales ratios were under 9/10 of a month in nine of the eleven Coachella Valley cities surveyed. Market Watch called out the months of sales ratio of 06/10 of a month in Rancho Mirage (compared with 5.2 months one year ago) and 7/10 of a month in Indian Wells (compared to 7.6 months one year ago).
Sale Price Discount from List: For the third consecutive month, the May median value for the sale price discount from list was 0%. Interestingly, Market Watch stated that in this current market more homes are selling at exactly list price than above or below it, causing the median number to be exactly 0%.
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